Computer and printer manufacturer HP Inc. speak on Tuesday that it plans to lay off 4,000 to 6,000 employees over the next three years — making it the latest tech company to announce job cuts or a hiring freeze.
The layoffs at HP Inc., which make up nearly 10% of its current workforce, are part of a broader cost-cutting plan that comes amid falling sales and a slowing economy. feebleness. On Tuesday, the company said fourth-quarter revenue fell 11.2% year-over-year, to $14.8 billion.
The company is partly to blame for weak desktop sales, an issue that has affected companies in the PC industry in recent months. Fourth-quarter revenue in HP Inc.’s PC division. fell 13% year-on-year to $10.3 billion, mainly due to a 25% drop in consumer sales.
In a statement, HP Inc. CEO Enrique Lores described this as an “unstable macro environment” and cited “weaker demand” for his company’s products. in the past six months.
The layoffs of HP Inc. coincided with more cuts in the tech sector due to growing recession fears due to high inflation and high interest rates. Last week, Amazon Announcement of layoffs of 260 employees and hinting that there will be more next year, saying that the economy is in a state of “challenge point”. Some reports say Amazon plans to lay off up to 10,000 employees.
In the first day of this month, Facebook Meta’s parents said it would cut 11,000 employees. Meanwhile, Twitterafter being acquired in October by Tesla CEO Elon Musk, has laid off more than half of the workforce. And last month, Microsoft dismissal announcement through many parts.
HP’s latest layoff comes more than three years later previous job cuts in 2019 from 7,000 to 9,000 employees.
Not directly addressing the latest layoffs, Lores told the The Wall Street Journal that he’s bracing for a recession that could last until at least 2024, saying “it’s prudent not to expect the market to turn around in 2023.”
The layoffs, plus a reduction in the company’s real estate footprint, are expected to save the company $1.4 billion in annual spending by the end of fiscal 2025. It’s expected The restructuring will cost about $1 billion.
A spokesperson for HP Inc. Luck that layoffs are “the hardest decisions, because they affect the colleagues we care so deeply about. We are committed to treating people with care and respect—including supporting career and financial services to help them find their next opportunity.”
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